Brazil's TIM Participacoes announced a net profit of BRL 350 million for the second quarter, up 178 percent over the same period last year. The company attributed the performance in large part to the 25 percent increase in customer numbers to 55.5 million lines, with net additions of 2.7 million in Q2 alone. Its postpaid base grew by 317,000 in the quarter to over 4.8 million customers. Net revenue reached BRL 4.3 billion, an increase of 19.5 percent compared to BRL 3.6 billion a year earlier, and EBITDA rose 12.7 percent to BRL 1.14 billion. The EBITDA margin fell from 28.4 percent to 26.8 percent. ARPU was up 3.7 percent from the previous quarter but down 10.9 percent from a year earlier to BRL 21.6. MOU improved 15.4 percent year-on-year to 127 minutes, helped by on-net offers. TIM generated data revenues of BRL 734 million in the quarter, up 33.5 percent from a year ago and equal to 15 percent of mobile revenues. The 3G network covered 273 cities or 57 percent of the urban population at the end of June, and roll-out will accelerate in H2. Capex totaled BRL 719 million, or 17 percent of revenue, up 38 percent from a year earlier due in part to licence payments. Operating free cash flow rose 47 percent year-on-year to BRL 339 million. Looking forward the company is focused on its announced takeover of AES Atimus, which will help it expand in the business and fixed broadband markets.
